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The days of Private-Hire and Taxi Drivers filing separate tax claims for service fees paid to services like Grab and Ryde may soon be over.

MOF requested feedback from the public for proposed changes to the Income Tax Act. They took into account 37 out of the 100 feedbacks received.

Following the suggestions, the draft Income Tax (Amendment) Act will increase the expense ratio from 40% to 60% for private-hire and taxi drivers. This comes after a common piece of feedback called for private-hire drivers to be able to claim tax deductions from expenses incurred from driving.

Explaining the proposed changes, MOF said service fees will be included in the prescribed deemed expense ratio to simplify the process for taxpayers.

The Ministry also said that while looking into adjusting the expense ratio, they consulted the National Taxi Association and National Private Hire Vehicle Association on the regular expenses that their drivers faced.

Separately, LTA is offering a limited trial basis to the National Taxi Association and National Private Hire Vehicle Association to permit their drivers to perform delivery services.

Senior Minister of State for Transport Janil Puthucheary also announced in Parliament that LTA will work with the relevant operators to look at the trial’s feasibility. Dr Janil also reassured that the interests of commuters will be looked after, such as insurance coverage under such a trial.

Dr Janil said this after Mr Ang Hin Kee, Member of Parliament for Ang Mo Kio GRC and Executive Adviser to the National Taxi Association and National Private Hire Vehicle Association, asked in Parliament about the progress of reviewing regulations to allow private-hire and taxi drivers undertake courier services.

This comes after a report last year that e-commerce giant Amazon recruited taxi and private-hire drivers to courier goods under their fast Prime Now delivery service.

LTA continued to stress that taxi and private-hire drivers are not allowed to perform courier services without a passenger on board. Violation of that rule may result in having their vocation licences revoked.

Thus far, authorities have not come across a driver flouting the rules.

Under such a trial, measures will also be taken to ensure the availability of taxis and private-hire cars for commuters.

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